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JPMorgan working on blockchain-based digital deposit token - Bloomberg

JPMorgan working on blockchain-based digital deposit token - Bloomberg

JPMorgan Chase is looking into the use of a blockchain-based digital deposit token as a way of making cross-border payments and settlement faster, according to Blomberg.

The bank has already built most of the infrastructure needed for the project but will not create the actual token unless it gets the go-ahead from US regulators, says Bloomberg, citing a source.

JPMorgan has been using a digital token, called JPM Coin, for several years, enabling corporate clients to move funds in dollars and euros from their different accounts within the bank.

However, the new offering could be used to send money to clients of other banks, says Bloomberg. It could also be used to settle trades of tokenised securities.

In a statement to Bloomberg, a bank spokesperson says: "Deposit tokens bring plenty of potential benefits, but we also appreciate that regulators would want to be thoughtful and diligent before any new product gets developed and used.

"Should that appetite develop, our blockchain infrastructure would be able to support the launch of deposit tokens relatively quickly."

Comments: (1)

A Finextra member
A Finextra member 12 September, 2023, 08:13Be the first to give this comment the thumbs up 0 likes Does it really simplify money transfer? First, the sender needs to buy the tokens using funds from a regular bank account snd store them in a deficated wallet/ account. Second, the sender needs to transfer the tokens to recipient via a dedicated token exchange system. Third, recipient needs to receive into a wallet account, redeem the tokens in his end and deposit the money received in his bank account. Unless tokens are held for own reasons and then spent as tokens, the buying and selling is an extra cost, risk and burden that somebody has to pay for. The business model risks being DoA?